Shares of Walt Disney Co. have recently risen amid optimism about the company’s ambitious streaming goals, and this, according to one analyst, is reason enough to breathe shares.
Daniel Salmon, a BMO Capital Markets analyst, downgraded Disney’s stock rating on DIS,
The media joint venture expects performance from 230 million to more than 260 million subscribers in fiscal 2024, just days after it held an Investors’ Day. The company also plans to publish 100 titles per service each year in a major content drive.
“We hope that improved vaccination rates will help Disney continue as a solid ‘reopening’ drama, but with the recent significant expansion to both early vaccination news and Thursday Direct Consumer (DTC) Investor Day, we are sidelined with the headline” Salmon is starting the hard part ” Wrote in a note.
Shares of Disney fell 1.2% in trading on Monday morning. The Dow Jones Industrial Average DJA has gained 24% over the past month,
Disney is a component, up 2.7%.
Salmon Netflix Inc. NFLX,
The big hat and mega cap he covers includes “reclaiming the top big mantle” among internet and media companies, followed by Alphabet Inc. GOOG,
GOOGL,
And Amazon.com Inc. AMZN,
“Of course, the Disney + sub-forecasts exceeded very positive expectations and were supported by incredibly new content,” he wrote. “But our favorite ‘story’ stock closes this recommended chapter between DTC Investor Days.”
Salmon also has questions about how Disney’s ESPN brand will operate in the streaming world. When Disney raised subscriber targets for the ESPN + streaming service on its investor day, “Otherwise it was relatively low. [the company] Sees live gaming and ESPN streaming. ”
Disney raised its price target on shares to $ 165 from $ 165 in a recent note, while arguing that it was “not enough” to support a positive view of the stock.